There’s is a lot of nuances to buying a fixer. You need to buy good bones, that’s what all the people say. That means structure. In many cases it means architecture. Even more often it means buying a property that has been left in original condition.
Over the years I’ve come to the conclusion that when we look at a property we figure it needs to be gutted. We’ve done a lot of repairs, but drywall is cheap. Finish carpentry is expensive so you have to consider that in the pricing.
When looking to buy a fixer, you start with the asking price, and begin deducting. You never listen to what’s been done unless it’s systems. Updated electric panel is a plus, but look at it, make sure it’s big enough to expand. Updated plumbing is a plus, new water service is a plus, new furnace, great, a new roof even better.
You deduct for paint, really, really deduct for refinished floors, deduct for new fixtures, and maybe appliances, depending what they are worth on Craiglist. Deduct for carpeting. You need to really deduct for carpeting because chances are they won’t let you lift it up to see what’s underneath.
Then start looking at what you can salvage, and what’s in your way. You can’t deduct for the full cost of remodeling, but you can add, and subtract for what you want to do.
In simple language, pencil out all of your costs before hand. Look at the numbers, and see where you are at in terms of market value, then base your offer on that. Be open to negotiation. Make your offer low enough that it’s good for you, but be realistic in terms of getting the property.
